Personal loans disbursals reach a new high in Oman

Personal loans disbursals reach a new high in Oman

Muscat: Salaried individuals in the Sultanate of Oman have relied a lot on personal loans from commercial and Islamic banks and the growing appetite can be gauged from the new figures released by the Central Bank of Oman (CBO) in its 2022 report. According to the report, personal loan disbursals by commercial and Islamic banks in Oman hit a new record of OMR10. 935 billion in 2022, up from OMR10. 542 billion a year earlier, underscoring the continued demand for personal banking credit by salaried individuals to address their private, consumer and family-related funding requirements. The report said that personal loans accounted for a significant 37. 4 percent of total banking credit of OMR29. 223 billion recorded in 2022. This is in line with a 40 per cent cap of their loan portfolio set by the Central Bank of Oman for personal loans (including residential housing loans). Personal loan requests cover a broad array of funding requirements ranging from housing finance and improvements, to educational, wedding, medical and holiday-related expenditures. Often, it can also be used to fund the purchase of automobiles, household electronics and other consumer-related expenditures. Personal credit has been on a steady upward trajectory over the past